Singapore group ADDX announced the tokenization of a private equity fund offered by $119 billion Partners Group, making it one of the first major private equity firms to be tokenized with the aim of broadening investor access to alternative investments.
The allocation is from the Partners Group Global Value SICAV, which was launched in 2007 and totals €5.5 billion ($6.4 billion). Due to the tokenization, international accredited investors will be able to access the fund at a minimum ticket size of $10,000 rather than the typical $100,000 minimum.
The fund itself is a diversified private equity portfolio that has exposure to more than 500 underlying companies and is broadly diversified across a variety of industries and vintage years. Performance of the fund has been 16.7% per annum since inception.
“Tokenization marks another important milestone for the private markets industry,” said Victor Jung, head of distribution partners and liquid private markets Asia at Partners Group. “Partners Group has always been at the forefront of providing innovative private markets solutions to different types of investors and the story continues today, underpinned by strong demand from the accredited investor universe.”
Regulated by the Monetary Authority of Singapore (MAS), ADDX is a digital securities exchange that seeks to democratise access to private investments.
Digital securities are also known as security tokens or tokenised securities. They are issued using blockchain and smart contract technology in order to automate the error-prone and manual processes that have hitherto made it inefficient for private market securities to be distributed to a large number of investors, officials said.
The technology completes corporate actions in a quicker and less costly manner – including actions like fund unit redemptions, dividend and coupon payments, cap table management as well as secondary trading.